1) Controllable margin = (478000-286800-62400) = 128800
Return on investment = 128800/644000 = 20%
2) calculate following
Alternative 1 | Alternative 2 | |
The controllable margin | 128800 | (109480*40%+128800) = 172592 |
The expected return on investment | 128800/515200 = 25% | 172592/644000 = 26.8% |
The service division of Raney Industries reported the following results for 2020. Sales $478,000 Variable costs...
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